Buy to Let index

August 2016 - No sign of post-Brexit slowdown in rental market

Yields continue downward trend

  • The average gross rental yield for properties in England and Wales continues its general downward trend and, while slightly up on June’s figure of 4.4%, the 4.5% recorded in July 2016 is still below the average yield of 5.1% recorded in the same month last year.

  • The North East had the highest yield at 5.5%, despite being home to the lowest house prices in the country. A typical property in the region was valued at £118,821 in July but comparatively high rents pushed yields higher than anywhere else. In June the region had recorded yields of 5.1%.

  • In the July 2015 survey, both the East Midlands (5.8%) and the West Midlands (5.7%) saw some of the strongest yields in the country. However one year later the typical yield has dropped to 4.3% and 4.1% respectively.

  • London saw the smallest yield for landlords, at 3.2%, and is home to the highest house prices in the survey. This figure has dropped from 4.5% a year ago, suggesting a tightening in the London rental market.